$10,000 Portfolio: Booking Profits, Taking Losses, Heading Into a Good Fog

 |  Includes: AAPL, AMZN, BBY, F, NFLX
by: SA Editor Rocco Pendola

Several weeks ago, I set out to double a speculative $10,000 portfolio by the end of the year. Follow the proceeding link to see the initial article in what has become a series of articles, instablogs and StockTalks that keep track of the portfolio's trajectory.

Considering the market volatility, the portfolio has performed quite well. Executing bull put spreads has certainly helped matters, but the strength of Amazon.com (NASDAQ:AMZN) and early profits on a Netflix (NASDAQ:NFLX) put has helped offset losses I was forced to take in Best Buy (NYSE:BBY) and Ford (NYSE:F).

As of nearly noon, eastern time, Wednesday, here's where the $10,000 portfolio stands:

  • BBY October $26 calls (10), stopped out at $0.53. Value: $530. Profit/Loss: -$780.
  • Prior to taking the BBY loss, had $2,773 worth of option spread credits and banked profits in the account. The BBY loss knocks that down to $1,993.
  • AMZN January 2012 $225 calls (2), closing out position at $18.28. Value: $3,656. Profit/Loss: +1,360.
  • F March '12 $16 calls (100), closing out position at $0.14. Value: $1,400. Profit/Loss: -$800.
  • Add the AMZN profit to $1,993 and the $10,000 portfolio now has $3,353 worth of option spread credits and banked profits/losses. Total option spread credits are $1,912.

Open Positions

  • BBY March '12 $22 calls (10). Value: $3,820. On-paper Profit/Loss: -$460.
  • Apple (NASDAQ:AAPL) and AMZN bull put spreads set to expire worthless at end of next week.

Account value, as of this writing: $13,918.

While I was hesitant to give up on F and close AMZN too early, I think it was the right move. Included in the $13,918 total is a profitable NFLX put that was closed out at $26.00 for a profit of $630 weeks ago. I left some money on the table there, but as fellow Seeking Alpha contributor Robert Weinstein likes to say: "If you're not leaving money on the table, you're not making money."

In a matter of hours, I will be heading out to do one of my most favorite things: Wander around aimlessly in my former hometown of San Francisco. There's something about walking the streets of San Francisco, particularly at night when the roads are slick with mist and the sky is weighed down by fog. Experiencing the coldest winter I ever saw - a San Francisco summer - clears my head.

(You can follow me on Twitter - @RoccoPendola - where I will not only post photos from San Francisco, but where I regularly Tweet about stocks and such).

I plan to come back fresh with a Monday or Tuesday update next week, complete with new ideas that will take this thing to a double, maybe even before you settle in for Tofurky or Turducken come late November.

Disclosure: I am long F.

Additional disclosure: At the time of this writing, I own F March 2012 $16 calls in my personal trading account. While I sold them in this hypothetical account, I do not intend to sell them, as of yet, in my personal account. I do not own the other positions mentioned, but because I day and swing trade stocks, primarily using technical analysis, I may open and close positions in any of the stocks mentioned, often using options, at any time.